Catholic school board surprised by $23.5-million budget shortfall

Same miscalculation has afflicted TDCSB two years in a row

An almost $9-million “surprise” budget shortfall at the Toronto Catholic board has ballooned to more than $23.5 million after the same miscalculations were used for a second year.

Late last fall, the board discovered a massive error by finance staff that led to a $8.9-million deficit for the 2013-14 school year, despite the books officially showing a small surplus of $292,000.

And despite a balanced budget plan for this school year, 2014-15, the board has now realized the mistake was repeated, adding a further $14.62 million to the shortfall.

“In finding those errors (in 2013-14), those errors were carried through into the planning for this year that had already been executed,” said board spokesman John Yan.

The miscalculations for both years included projections for benefits — which changed under the last contract with staff, and include maternity pay and sickday provisions — as well as hiring more teachers than needed based on erroneous enrolment predictions.

The board’s chief financial officer, Sandra Pesslone, has recently retired.

Spokesperson John Yan said the board won’t have to eliminate the entire shortfall all at once, and noted that when the board last found itself in a deficit, it took three or four years to get back into the black.

“Those errors (in 2013-14) . . . were carried through into the planning for this year that had already been executed.” JOHN YAN BOARD SPOKESMAN

“Until we can straighten out everything and come up with a surplus, then we will work down that deficit,” Yan said.

This week, trustees voted to cut $5.16 million in administrative costs reducing the 2014-15 deficit to $9.46 million, a plan they are sending to the Ministry of Education for final approval Jan. 15.

Among the savings are cuts to supply teachers ($1.6 million), nonclassroom-related professional development ($784,000), central office supplies and printing ($400,000), deferring hiring for vacant nonclassroom jobs ($411,000) and transferring operating costs for leased school space to the capital budget ($1.16 million).

“Our top priority in introducing any deficit reduction measures was to not adversely impact students and teachers in the classroom,” said board chair Michael Del Grande said.

While the deficit recovery plan makes sense, said trustee Maria Rizzo, she still has concerns about the impact.

“Our buildings are aging and crumbling. . . . It is going to put us further behind on our orders,” she said.

The board has a total operating budget of $1.2 billion.

Its 2015-16 budget process begins next month and a board audit committee is looking at ways to make sure the problem isn’t repeated.